Debt Collection on void contract

[jonam2]

What is the name of your state? NC

Need help to understand where I stand.

I signed a contract with some ad agency (from NJ)(myself and local agent signed) it , there was a space for manager approval also, which was not(never) signed and I faxed the front sheet of the contract to agent (as he plead that he wants to show some quota fullfillment from his region).

But in couple days I realized that the agent tricked me to sign the contract by promising me something which I was not going to get ultimately.

Since I had the original contract with me, I called the agent and told him that there is no meeting of minds and I do not want to go ahead with the deal. He asked to put VOID on the contract.

After few days the agent called and said he needs the contract
for company's accounting purposes (to keep the numbered contract in file), in good faith I gave him the VOIDED contract as
is , but kept a photocopy of it.

In couple of weeks I got a bill for the full amount of the contract from the ad agency. I called them and said that the contact is voided, on phone the manager(or responsible person) acknowledged that yes the void is written on the contract, and he will get back, but never heard from him, tried to reach him again but to no vail.

Now I am getting harrassing letters from collection agency on the basis of faxed copy, on behalf of ad agency, threanting to take me to court, although I have replied them that the contract was voided(cancelled) with the concent of the agent and sent them copy of voided contract. The contract was signed in my dba company name not in my company name.

What is the chance I stand in this case.

PS: Ad agency put my case with the CA even before the date of actual service promised in the contract.

 

[straightup]

i beleive some follow up questions are in order to have your inquiry answered to your satisfaction.
are you the business owner? if so, you most likely represent the capacity and authority to make purchasing decisions on behalf of the company, dba or not. your previous purchase history on behalf of the company may become issue, especially if you have done previous business with the same ad agency.
did the ad agency deliver (i.e. ads)?
did your "voided", but signed contract state anything about some portion of the total due as a down payment prior to service rendered that would give the ad agency cause to turn you CA?
you said you got a bill. you should have 30 days (most states) to write sender certified mail and dispute validity of debt, regardless of vendor or CA. then the ball is in their court to demonstrate validity and cannot mark your credit until validity of debt has been established--i hope this helps you get your answer

 

[jonam2]

thanks for the reply.

This was the first time I did anything with this agency. I was under impression that I will get movie ad (I was given that impression by the agent) , but they just provide still ads. , that's the reason I voided the contract.

Yes , contract says deposit amount, but we (with the consent of that agent who signed the contract with me) voided the contract even before submitting the original contract to the company office in NJ.

I received first and only bill from them dated 10/10/02 and when I talked to them (on phone) that the contract is voided, I was threatened that they will send the account to CA and I received first letter from CA dated 10/30/02 (< than 30 days of the bill date). whereas the service date was scheduled 11/15/02

Here they breached all the three elements of the contract
No manager approval on contract--- (Competent person to sign)
Consideration -- (Did not provide any servie and they want the money for nothing, and had intentions of putting account with CA
right from the beginning)
Meeting of the mind--- I was under impression of getting movie ad, but later on found out that they only provide still ad.

What are your thoughts ?? thanks again.

 

[jonam2]

Any more insight!!

thanks,